Marketing Exam Final

a brand is based on 3 key components

trust; promise; connection

_______ is the practice of marketing two or more brands together, on the same package or promotion

co branding

setting the budget: this is an example of: ________ the communication budget is set so that the firm's share of communication expense equals its share of the market (Competitive parity/percentage of sales/available budget)

competitive parity (percentage of sales is that the communication budget is a fixed percentage of forecasted costs, and available budget is forecast their sales and expenses plus desired profits: the difference between this is reserved for the communication budget)

based on the buyer goal hierarchy, buyers seek value and are motivated to meet three basic goals: what are they?

emotional (self image, self esteem, feelings, thoughts, feelings in control); functional (tangible specific features or characteristics); economic (fair exchange for product or service, price can be primary motivator) makeup brand that improves self-esteem, has good applicator on skin, and is well priced, not too expensive in relation to other makeups

define positioning statement

indicates how you want consumers to think about your product relative to competitors (position you want to occupy in the target market's mind)

what are the 5 cs in key determinants of price

Consumer; competition; company objective; channels; costs (set prices customers can be convinced to pay for the product's value)

t/f: a positioning statement is an external document that guides communication between your firm and your target audience

F (inward document that guides marketing communication to reach your target audience; communicates the value proposition, why product is best fit for consumer need)

name the 7 steps in planning and executing an advertising campaign

ID target audience; set objectives; determine budget; convey message; evaluate and select media; create adverts; assess impact

name the 4 factors that affect the consumer decision process:

Marketing mix (product, price, place, promotion); psychological factors (motives, attitudes, perceptions); social factors (family, reference groups, culture); situational factors (purchase situation, shopping situation)

What is the concise way of stating an objective? (acronym)

SMART: specific Measurable Attainable Realistic time frame for completion

name the 5 step process in segmentation, targeting, and positioning: y

Strategy or objectives; segmentation methods; eval segment attractiveness; select target market; identify and develop positioning strategy (ends with a positioning statement that is an internal document that guides marketing communication to reach your target audience)

what is the skill: integrated marketing communications?

a planning process designed to assure that all brand messages sent via the promotion mix are received by a customer, are relevant to that person and consistent over time

what are the key brand resonance dimensions in the top of the pyramid?

behavioral loyalty; attitudinal attachment; sense of community; active engagement

pricing strategies (how an organization communicates price to create value for the consumer and profits for the organization) include : ____, : continuity of price set between regular and deep discount ____: promotion pricing: reduced temp to stimulate demand _____: prices set low to grow market share and _____: prices set high to capture value created by new product that is demanded by innovators and early adopters

everyday low pricing; hi/low pricing; market penetration; price skimming

____ is the process by which ideas are transformed into new products and services that will help firms grow

innovation

a brand is a ___ ____ which provides value to the firm and customers. it is distinct from other sellers and differentiates itself from the competition.

intangible asset (also is a mental box made up of a totality of impressions both real and perceived)

_____ and _____ _______ are tools that aids organizations in writing a positioning statement. The latter displays, in two or more dimensions, the position of products or brands in the consumer's mind: and the output is the result of primary data from marketing research

value and positioning maps; perceptual maps

___ costs vary with production volume, while _____ costs are unaffected by production volume. So you consider your product costs and a __ ____ provided by the firm to begin considering the price

variable; fixed; margin target

brand resonance pyramid: the model that provides a framework to aid marketers in ensuring the brand connects with consumers on key dimensions. What are the factors in the pyramid?

resonance; consumer feelings; consumer judgment; brand performance; imagery; salience (within resonance is the psychological bond with customers: behavioral loyalty, attitudinal attachment, sense of community, and active engagement)

In the BUSINESS OBJECTIVE of the MARKETING PLAN (part 1), what are the BCG product portfolio matrix and the Ansoff matrix?

BCG Product portfolio compares the relative market share with the market growth rate. STARS High market share, high growth. QUESTION MARKS low market share, high growth. CASH COW: low market growth, high market share DOGS: Low both the ansoff matrix: deals with Products and services, and markets. Current and new. Market penetration (current product, new market), product development (new product current market), market development (new market, current product), diversification (new new)

match: ______ a 2 x 2 matrix that helps organizations organize products/brands and arrive at business decisions/ objectives for a product/brand; focus and prioritization are key ____: a 2x2 matrix that helps organizations arrive at growth decisions/ objectives for a product/brand _____ a concise way of stating an objective (SMART framework; Ansoff; BCG)

BCG for business decisions and objectives because it deals with relative market share and market growth rate: can help set objectives because it deals with stars, question marks, cash goes, and dogs: what should we do with strategy in terms of investment and prioritization of products? the ansoff matrix can helpp set objectives and GROWTH because focuses on the markets and products, and seeing if it's going into a new market or current one, and if a product is a new or current product. For example, Uber's growth strategy could be classified in the ansoff product matrix by saying it is focused on diversification: developing new products in new markets.

outline the 5 steps in the consumer decision process:

NIaPP: Need recognition information search alternative evaluation Purchase Post purchase 1) during the need recognition and information search: there is an internal search and external: internal consists of memory and knowledge, whereas external, outsiders. Length and intensity of search based on the PERCEIVED risk with the purchase. 2) in the alternative evaluation: universal, retrieval, evoked set. Want to be in the evoked set range.

Name the 4 Ps/

Price, promotion, product place: deliver value proposition, communicate value, create value, and price captures value. This is the marketing mix: The decisions to be make to respond to the needs of the firm's target audience, and when this response occurs in a positive way, the firm creates value

find the selling price: what is the formula:

SP = Cost - (1-% margin). % margin = (selling price - cost) / selling price % markup = selling price - cost / cost. unit breakeven= fixed costs / unit contribution = fixed costs / selling price - variable cost revenue breakeven = fixed costs / contribution margin % = fixed costs / (unit contribution / selling price)

what does the situation analysis (step two in the marketing plan) include:

SWOT and 5c's assesses both the internal and external environment and shapes both business objectives and marketing strategy. strengths, weaknesses, threats and opportunities. Company Competition Customer Context Collaboration

What does a marketing plan consist of?

a written document composed of an analysis of the current marketing situation, opportunities and threats for the firm, marketing objectives and strategy specific in terms of the 4 P's action programs, and evaluation dimensions. 1) business objective 2) Situation analysis SWOT 3) Identify opportunities (segmentation, targeting, positioning) 4) Implementing marketing mix 5) evaluate performance

what is snickers positioning statement example?

among snackers, snickers is the brand of candy bar that satisfies your hunger because it is packed with peanuts (among target market, x is the brand of (frame of ref) that (point of difference) because (reason to believe) )

use the AIDA forum for advertising in the iPad launch:

attention and awareness captures through jobs conference, interest raised by focusing on advantages and benefits; desire: convince customers that they want and need the product; take the action to buy

brand equity (the assets and liabilities linked to the brand that create value) Include the 4 components:

brand association; perceived value; brand awareness; brand loyalty

___ ___ occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

brand dilution (under brand line extensions) (evaluate the fit between the product class of the core brand and the extension; evaluate consumer perceptions

____ ____ is the set of assets and liabilities linked to a brand that add or subtract from the value provided by the product or service

brand equity (brand association, perceived value; brand loyalty; brand awareness)

__ ___ is a contractual agreement between firms, whereby one firm allows another to use its brand name, logo, symbols, and or characters in exchange for a negotiated fee

brand licensing

4 key approaches that organizations use to create and manage key brand assets

brand ownership (manufacturer brands or national brands) ; brand line extension (the use of the same brand name for new products being introduces to the same or new markets); co-branding; licensing

increasing the _____ of the product mix diversifies risk and capitalized on established reputations.

breadth (the number of product lines; increasing the depth attracts buyers with different preferences, increases profits by furthering market segmentation and capitalizes on the economies of scale)

what are the factors for establishing a relationship with retailers?

choose retail partners; identify types of retailers; facilitate retail strategy; managing a multichannel strategy (ensure customer expectations fit with retailer's position and manufacturer's distribution strategy)

what are keys ways to determine and assess the effectiveness of your advertising campaign?

clicks, impressions, click through rate (interaction), cost per click

in the step 2) concept testing _____

concept is a brief written description of the product, customers reactions determine whether or not it goes forward triggers the marketing research process (ask through questionnaires: how likely would you be to buy this product?)

premarket testing includes 4 major components

consumer response (gather data for consumer reaction to new product concept) ; new product marketing plan; adjustments; volume projections (estimate year one and year two consumer sales volume)

Product line ____ refers to discontinuing products that are overextended in a line. Cannibalizing sales, disproportionate resource allocation; items obsolete

contraction

Identify the 5 steps in the marketing research process:

defining objectives and research need; designing the research; data collection process; analyzing data and developing insights; action plan and implementation

product line management includes managing the breadth and depth of product lines within a product mix: ___ is the number of products within a line; ____ is the number of product lines

depth; breadth

within the consumer decision process, evaluative criteria are ______ attributes. Of the consumer decision rules, there are _____ decision rule: multiple characteristics evaluated, and ____ decision rule: one characteristic like price determines purchase

determinant ( product or service features that are key to buyer and are a point of differentiation); compensatory; noncompensatory

the ___ __ ___ is the process by which the use of an innovation spreads throughout a market group, over time and over various categories of adopters

diffusion of innovation curve (innovators, early adopters, early majority--this is the critical mass--, late majority, laggards)

what is the value of branding for the customer and the firm based on customer lifetime value and financial value?

facilitate purchasing, establish loyalty, protect from competition and reduce marketing costs; Are intangible assets and impact marketing value

innovation strategies: ______ radially change competition and consumer preferences with breakthrough products

first movers (advantages include gaining market share before competition, setting frame of reference, pricing, distribution, can lock up scarce resources, buyer switching costs, reputation/branding)

within 1) idea generation step is the organized brainstorming R&D; this includes ____

focus group; external: consumers, competitors, analysts, secondary research

outline the 6 steps in the new product development process: process that methodically moves from product idea to market launch; the key value of this process to the organization is to improve the new product success rate

idea generation; concept testing (pre-prototype tests to evaluate the idea); product development (prototype creation; marketing strategy, branding, labeling, promotion, price, distribution strategy, manufacturing feasibility); market testing (test the product in the market for the final validation); product launch (full scale rollout with all marketing support); evaluation of results

what are the key components in evaluating segment attractiveness? (within the segmentation, targeting, positioning skill: strategy/obj--segmentation methods--eval seg attractiveness--select tgt market--identify and develop strategy)

identifiable; substantial; reachable; profitable; responsive

Brand naming approaches: _______ more effectively meet unique consumer segment needs. ______ : simple, focused, efficient approach when master brand has major value contribution. ______ leverage strength of master brand yet allow some freedom with product focus (corporate/family/individual)

individual brands (more effectively meet unique consumer segment needs); corporate (simple, focused, efficient approach when master brand has major value contribution); family (leverage strength of master brand)

within the 7 steps in planning and executing an advertising campaign: step 2) set advertising objectives: What are the three factors to consider for the target audience ID target audience, set ad objectives, set budget, convey message, select and eval media, create ad, eval

informing (introduction, early growth); reminding (maturity); persuading (growth, maturity) want to increase awareness through informing, reminding customers that product is needed; and persuading or influencing the immediate buying decision

____ refers to the consumer's degree of interest in the product or service.

involvement

define a sustainable competitive advantage:

it is an advantage over the competition that is not easily copied, and thus can be maintained over a long period of time (CLOP Customer, locational, operational, and product excellence)

why are channel members important in pricing strategy?

manufacturers, wholesalers, and retailers all have different perspective on pricing strategies

a __ __ is a formal, written document that has 5 key steps that lead to formalizing the organization's decisions and goals; includes key target market and marketing mix details

marketing plan (objective, situation analysis through 5cs and swot, identify opportunities through segmentation, positioning, and targeting, implement the marketing mix or 4 ps, and then evaluate the performance using marketing metrics)

A well defined ___ ___ Identifies the key and target market and marketing mic, that is the basis for organizations to create value and build a sustainable competitive advantage. (which is an advantage over the competition that is not easily copied and thus can be maintained over a long period of time.

marketing strategy

based on the product lifecycle model, sales are highest during the _____ stage. This occupies what type of consumer? _____. introduction : _____ growth : ______ maturity: ______ decline: ______

maturity stage (profits are rapidly increasing during the growth stage); late majority; intro innovators; growth early adopters and early majority; maturity late majority; decline laggards

Step 5 of the advertising creation: evaluate and select media: what is the media mix and media buy?

media mix is the combination of the media used and the frequency of advertising in each medium. Media buy is the actual purchase of advertising inventory, like TV, Print, mobile adsorption banner ads on facebook

what are the 5 creative aspects of communication?

music; humor spokesperson demonstration emotion these help in the Aida mode: awareness, interest, desire, action (this model reflects the series of mental stages through which consumers move as a result of marketing communication; integrated marketing communications is a planning process that assures that all brand messages via the promotion mix are received by the customer are relevant to that customer and consistent over time)

in the consumer decision process, in the alternative evaluation stage, the marketer's goal is to be in the _________ set: Need recog--info search--alt eval--purchase--post purchase

of the universal, retrieval and evoked, want to be evoked

what are some key factors that create great marketing communication?

persuasive ability; clear and understandable; appeals to consumer emotion; provocative there is also the pyramid: emotional and self expressive benefits, functional benefits, and attributes. Easiest to convey attributes and hardest to deliver emotional and self expressive benefits. people learn more when emotions are engaged.

_____ refers to the specific intended meaning od the brand in the minds of targeted consumers. It relates to competitive offerings and to customer needs

positioning

the _____ is internal facing and guides the marketing communication to reach the target audience

positioning statement (among snackers, snickers is the candy bar that satisfies hunger because it is packed with peanuts; among target market, x is the brand of frame of reference, that point of difference because reason to believe)

why are premarket tests conducted and what is the difference between a premarket test and a regular test?

premarket tests are conducted by firms before they actually bring a product or service to market to determine how many customers will try and then continue to use the product THIS IS ACCORDING TO A SMALLER POPULATION. - test marketing introduces the offering to a limited geographical area prior to national launch: so this is more expensive than premarket tests, market demand is estimated.

the ____ defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers a starting point for their strategy planning. name the phases

product lifecycle model; introduction; growth; maturity; decline (or innovate). innovators: introduction maturity: late majority decline: position for diehard consumers or those with special needs or they completely exit the market

company objectives can be Profit-oriented, sales oriented, competitor oriented and customer oriented: Match term with definition _____: institute a companywide policy that all products must prove at least an 19% margin _____: To discourage more competitors from entering the market, set prices low. ______ target a market segment of consumers who highly value a particular product benefit and set prices relatively high (premium pricing) _____: Set prices very low to generate new sales and take sales away from competitors, even if profits suffer

profit-oriented; competitor-oriented; customer-oriented; sales-oriented

in the evaluating segment attractiveness phase, we ask two questions based on ___ and ____

profitability and customer lifetime value: should we serve a segment? Is it profitable, what is the customer lifetime value?

in the step 3) product development, a ___ is the first physical form or service description of a new product, still in rough or tentative form. _____ ___ is testing where the firm attempts to determine whether the product will perform according to design and whether it satisfies the need for which it was intended. __ ___ uses potential consumers, who examine the product prototype in "real use" setting to determine its functionality, performance, potential problems, and other issues specific to its use.

prototype; alpha testing; beta testing (prototype in real use setting to determine functionality, performance..etc BETA is BETTA)

what are some factors that affect product adoption

relative advantage; compatibility; observability; complexity and trialability

apply the brand resonance pyramid to Heineken beer:

resonance: consumer loyalty, they get it over other beers. strong positive perception of the beer. consumer feelings: feel good when drinking it, positive social exchanges. Consumer judgements: view it as reliably good taste, trustworthy brand, quality, superiority. Imagery: people having fun, young, male 20s. brand performance: universal premium lager beer; design and packaging: iconic brand name. Salience: it has global branding with green bottle and red star, huge and strong advertising campaigns, sharing good moments, friendship

in the _____ ____ Phase of the segmentation, targeting, positioning process Skill, you divide the market of the potential consumers into homogenous subgroups based on 6 methods. _____ is age, gender, income. _____ is lifestyle, self concept, self values. _______ is convenience, economy, prestige. ______ is occasion, loyalty; based on how they use product or service _______ is urban, exurban, established, sophisticated, townhouses, Bohemians, affluent retirees

segmentation methods; demo; psychographic; benefits; behavioral; geodemographic

supply chain management is a set of approaches and techniques a firm employs to ___ their suppliers, manuf, warehouses, etc into a _____ in which merch is _______

set of approaches and techniques firm employs to integrate their suppliers, manufacturers, warehouses, etc into a seamless operation in which merchandise is produced and distributed in the right quantities, to the right locations, at the right time. the goal is to minimize system wide costs while satisfying the service levels that the customers require

what is the marketing channel

set of interdependent organizations involved in the process of making a product or service available for use or consumption. Each channel member depends on the others to do its job, the process is continuous and can change over time due to market condition, and there is an end-user focus: only the end user consumer pays to cover all the costs what are

the fundamental basis of above-average performance in the long run is a ___ ___ ____. What are the 4 things that this is based on:

sustainable competitive advantage; customer excellence (they loyal); locational excellence (good physical location); operational excellence (efficient supply chain and Human Resources); product excellence (products with high perceived value and effective branding and positioning) CLOP

customer price sensitivity: based on economics, there is a customer demand for product at a price. (buyer goal hierarchy says customers seek value and are motivated by economic, emotional, and functional factors). what does the demand curve say about price sensitivity?

the degree to which an individual's willingness to pay changes with a change in price; knowing demand curve enables us to see relationship between price and demand. in elastic markets, demand is sensitive to price changes. Relatively small changes in prices will generate fairly large changes in quantity demanded. items seen as commodities. in inelastic markets, price is insensitive. seen as necessary items.

what is the value proposition? name the 4 elements involved: What is Uber's value proposition statement?

the element of strategy that looks outward at customers, goal to create demand and answer 4 question what needs what channels what relative price what customer NCCR Customer: drunk 20 year olds Channels: über and online app Relative price: price willing to pay better than cabs and Lyft char needs: get them home safely

describe the AIDA model

the model of mental stages through which consumers move as a result of marketing communication; most common framework to inform marketing communication funnel: Attention interest desire and action

define price

the overall sacrifice consumer is willing to make to acquire a specific product or service, and the value associated with it -- based on value proposition: what customer (segment); what needs; what channel' what relative price (set prices those customers can be convinced to pay for those benefits)

how do firms grow? Hint: ansoff matrix

through the product development and diversification strategies: new products in current market or (diversification) new markets new products

why do firms create new products?

to survive (to remain competitive, to create customer value, to grow)

what are the different targeting strategies? amazon is considered ____ because applies to everyone. Netflix is extreme form of segmentation because tailors to individual needs:______ Lulu lemon focuses on a single primary target. market.: ______ über has several products targeting different customers based on their specific needs: ______

undifferentiated; micromarketing or one-to-one; concentrated; differentiated